POLI 441 Lecture Notes - Lecture 10: World Trade Organization, Selection Bias, General Agreement On Tariffs And Trade

• School: McGill University
• Department: Political Science
• Course: POLI 441
• Professor: Krzysztof Pelc

Document Summary

8:45 pm: endogeneity might be due to a simple bias, selection bias. Occurs when the sample under examination is not randomly selected. Imagine that rich countries are more likely to enter the wto, then when we ask if the. We first need the odds of every country entering, then with these in mind, we can. Wto matters, ignoring the first selection can lead to a biased result estimate the impact of the institution: accession to the wto, constraints, vanuatu example. It varies because of opt out clauses, article 26 5c colonial heritage, binding overhand. The deal that countries get in the first place varies a lot. China gets a harsh deal: no binding overhang, tariffs are brought very low. Ecuador obtained bound rates far above their pre-accession duties. Wto accession is ad hoc - a country accedes on terms agreed between it and the wto. Compliance may suffer from overly demanding commitments. Entrants need to sell the accession domestically.